A method to interpret the magnetic anomaly due to a dipping dike using the resultant of the horizontal and vertical gradients of the anomaly is suggested. The resultant of both the gradients is a vector quantity and is defined as the “complex gradient.” A few characteristic points defined on the amplitude and phase plots of the complex gradient are used to solve for the parameters of the dike. For a dike uniformly magnetized in the earth’s magnetic field, the amplitude plot is independent of [Formula: see text], the index parameter, which depends upon the strike and dip of the dike and the magnetic inclination of the area. The phase plot of the complex gradient is an antisymmetric curve with an offset value equal to [Formula: see text]. For a dike whose half‐width is greater than its depth of burial, two maxima at equal distances on either side of a minimum value appear on the amplitude plot. For a dike whose half‐width is equal to or less than its depth of burial, the amplitude plot is a bell‐shaped symmetric curve with its maximum appearing directly over the origin. In the case of a thin dike, the amplitude function falls off to half its maximum value at the same point on the abscissa where the phase function reaches, i.e., [Formula: see text]. A combined analysis of the amplitude and phase plots of the complex gradient yields all the parameters of the dike. The method is applicable for the magnetic anomaly in either the total, vertical, or horizontal field. A field example is included to show the applicability of the method.